Day 48 Flashcards
A new piece of equipment was purchased and will depreciate SL at an annual rate of $15k. The tax rate is 30%, the annual depreciation will:
Increase after tax cash flows by $4,500
15,000 × 30% = 4,500
MCQ-07779
Michelle Porters five forces of profitability:
- Barriers to entry
- Market competitiveness
- Bargaining power of customers
- Existence of substitutes
- Bargaining power of suppliers
MCQ-04877
An internal auditor working in ERM will perform the following tasks:
- Coordinate ERM activities
- Give assurance that the risks of the organization are evaluated correctly
- Evaluating the risk management process
MCQ-04307
What uses analysis of production processes to ensure that resource uses stay within target costs?
Kaizen - continuous Improvement, occurs at the manufacturing stage where the ongoing search for cost reductions takes the form of analysis of production processes to ensure that resource uses stay within target costs
MCQ-06791
Under Monopoly, strategic plans focus on:
Profitability from production levels that maximize profit
MCQ-03489
The NPV of a proposed investment is negative, therefore the discount rate used must be:
Greater than the projects Internal Rate of Return
IRR is the discount rate that = NPV of zero
MCQ-03834
How is Normal and Abnormal spoilage allocated?
Normal - allocated to good production COGM
Abnormal - is charged to the income Stmt Period Cost
MCQ-03918
What are the benefits of JIT management strategy:
- Cost reduction
- WIP reduction
- Quality improvement - more efficient and effective
Note: JIT is designed to produce variability but work within normal production cycles
MCQ-06792
There was a stock market boom and FED wants to counteract that, it will:
Sell Government Securities (reducing the consumers money in the market place)
And
Increase the discount rate
MCQ-14555
